The former CEO announced his resignation and has agreed to sell all of his shares of the tax-service company.
Hewitt was fired from his CEO position last year after an internal review into allegations of inappropriate sexual conduct, according to a report by The Virginian Pilot.
A lawsuit from a group of shareholders followed when Hewitt allegedly did not want to give up control of the company after the review.
His shares will be sold to Vintage Capital Management LLC, an Orlando-based investment firm.
The tax preparation company has also received a delinquency letter from the Nasdaq after failing to file its annual report for the fiscal year ended April 30 in a timely fashion, according to its press release.
The Nasdaq Hearings Panel will convene to determine whether the company will remain listed on the exchange.
Shares of Liberty Tax were up nearly 25% to US$10.50 in Tuesday afternoon trading.